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Termination of Franchise Agreement by Franchisor Template

Termination of Franchise Agreement by Franchisor Template

A Termination of Franchise Agreement by Franchisor is a formal contract that allows a franchisor to revoke a franchisee’s rights after defaults. It sets out the termination process, reasons for termination and the franchisee’s post-termination responsibilities, including de-identification and payment of outstanding fees.

Originally published by luminpdf.com

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Termination of Franchise Agreement by Franchisor detailing default grounds, post-termination duties and enforcement rights

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Frequently asked questions

The Termination of Franchise Agreement by Franchisor is a legal document used when a franchisor ends a franchise relationship due to a franchisee’s material defaults. It details the grounds for termination, such as failure to meet operational standards, pay fees or comply with training and reporting obligations. The template also outlines post-termination duties, including ceasing use of trademarks, returning proprietary materials, paying outstanding amounts and transferring phone numbers or online listings. This form helps franchisors enforce their rights, protect brand integrity and ensure compliance with post-termination obligations.
This agreement is completed by the franchisor initiating the termination and signed by both parties. Legal counsel may assist to ensure compliance with franchise laws and enforcement of surviving obligations such as confidentiality and non-compete clauses.
Once signed, the agreement is retained by both franchisor and franchisee for legal records. It does not need to be filed with a government office but may be used in court proceedings if disputes arise.

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